€£ and Gold

I am watching Gold to see if we are going to see support on any of the LMLP's. Is this more than a profit taking ? There is a major reaction line resisting price (see the 60 min chart) at these levels and the 1400 $ is a critical psychological support level. Should we break under it convincingly we could see massive long liquidation and a sharp fall. If price can get through the RL and have a daily bar close above the RL i would look to go long but it is now a fact that price has made a lower high than the previous 1431 high made in in early Dec 2010.
The forks for this particular Gold reaction line grid date back to mid 2010 and yet the effect on price is dramatic. Here are the details




















And a large well formed double tops in EurGbp showing the subsequent sharp drop. This formation is very reliable and occurs in all time frames.